Norwich Union launches home reversion plan

31 March 2005

Norwich Union has announced it will launch the Norwich Union Home Reversion Plan next month.

Home reversion plans enable older homeowners to raise cash from their home by selling all, or a share, of their property.

Norwich Union explained that as with a lifetime mortgage, the customer can remain in their home and there are no repayments to make.

The products are aimed at those customers who require more cash from their proterty than is available through lifetime mortgages or who want to guarantee a share of the property remains when the plan ends to give as an inheritance.

Alternatively, under the scheme customers can sell up to 100 per cent of the value of their home, and remain living there for the rest of their life.

Mark Kelly, director of Norwich Union Personal Finance, said: "Launching this plan is an important development in the equity release market as there has not been a major product provider in the reversion market for several years.

"Our research shows that some customers find a reversion plan to be a simpler proposition that might be more suitable for their needs than a lifetime mortgage. This is particularly the case if customers want to guarantee an inheritance, or need to release a larger amount of cash."